Blue Nile (NILE) Maintains Negative Rating, Falls 4%

Susquehanna Financial Group analysts Marianne Wolk and Malindi Davies maintained their Negative rating for shares of Blue Nile, Inc. (Nasdaq: NILE) and price target of $34.

The Susquehanna analysts noted that Blue Nile missed both Susquehanna's and wall Street's consensus expectations for holiday sales during the online diamond retailer's important 4th quarter.

The analysts also note that Blue Nile's investment in international expansion will likely hurt margins and earnings growth.

The only positive noted by the Susquehanna analysts that cash flow was 20% better than they forecast and that the company may start buying back its shares, as it has authorization to buy back up to $100 million in shares over the next two years.

Blue Nile's 52 week price range is $19.08 to $67.16.

Shares closed at $ 50.24 on Friday, a fall of more than 4%.